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There was a time when Transport for NSW put the Customer at the Centre of everything they did. Now they seem to be putting the customer at the centre of a plan to repair its own budget troubles.  

By Transport’s own measure, almost 1 in 5 households in NSW have a boat or some form of watercraft like a PWC or jetski, canoe or kayak or such. In total it is estimated that more than 2 million people go boating each year.   

Transport for NSW customers include: 

  • more than 540k boat / PWC licence holders 
  • more than 230k registered boats 
  • and numerous other marine clients through moorings and wetland leases.  

 More than 90% of registered boats are under 6m in length, the majority of which are the humble tinnie, family runabout and PWC. These are owned by everyday Australians. Hardworking taxpayers and young families who enjoy the great outdoors in a boat or watercraft. The common perception that boating is for the wealthy, cruising around in large white luxury boats is certainly not the case.  

The Boating Industry Association Ltd (BIA) representing an industry that last year reported national turnover of $9.64 billion, and employed more than 32,000 people, has expressed its concerns and dismay regarding the recently announced fee increases. At a time when governments need to be supporting small business and struggling families, the boating community are being slugged with what can only be surmised as blatant revenue raising, above and beyond CPI. Announced with no warning by Transport for NSW (late in the day on Friday, 17 May 2024), community and industry were informed that fee increases would come into effect from 1 July.  6 weeks’ notice, and no consultation with those impacted.  

As the peak body representing the marine industry in Australia, the BIA was surprised and alarmed at the apparent lack of regard given to New South Wales businesses and constituents. Other key stakeholders, including the Australian Fishing Trades Association (AFTA) and the Personal Watercraft Distributor Association (PWDA), share the BIA’s dismay. 

 Transport for NSW claims the increases will:   

  • “be reasonable” at no more than $35 for the majority – BIA says that is not the case and the latest fee increases go against the policy of adjusting fees in line with CPI (inflation), which the NSW Government has done for 20 years. The new fees will result in millions of dollars in extra tax revenue from the boating public. A public who already pay the highest boating fees in the nation.  
  • For example, if the current number of boat users took up a 3-year General boat and PWC licence, revenue from these licences alone would climb to $53 million a year. These are just two fee items on a schedule of 13 fees being changed.  
  • Needed to “support a range of maritime activities including safety” – BIA says boating fees already deliver a multi-million-dollar revenue stream under the hypothecated Waterways Fund to NSW Maritime for exactly that purpose. The Fund has for decades past delivered the best resourced and sustainable compliance, enforcement and education effort in Australia for recreational boating.  
  • ‘Enable extra attention for PWC’ – BIA says, NSW Maritime already applies an ‘extra’ charge to PWC licences and registrations; and has done so for many years to fund a program already dedicated to PWC rider compliance and enforcement. Some of those existing fees are already 300% higher than the equivalent fees for general boating.  
  • If the number of PWC registrations and or licences increase; so does the revenue already with an existing built-in tax designed to provide for dedicated compliance, enforcement and education to that sector of boating.  

 The new plan impacts the full range of boating fees in NSW, and just some examples are: 

 PWC licence fee increases in NSW from 1 July 2024: 

  • 1 year PWC licence: was $210, now $245 (up 17 per cent) 
  • 3 year PWC licence: was $460, now $662 (up 44 per cent) 
  • 5 year PWC licence: was $720, now $1042 (up 45 per cent) 
  • 10 year PWC licence: was $1043, now $1961 (up 88 per cent) 

The NSW PWC licence fees compare to $124 for a lifetime licence for a PWC in Queensland, and $45 for a one-year licence for a PWC in Victoria.   

General boat licence fee increases in NSW from 1 July 2024: 

  • 1 year Boat licence: was $69, now $77 (up 12 per cent) 
  • 3 year Boat licence: was $185, now $220 (up 19 per cent) 
  • 5 year Boat licence: was $292, now $351 (up 20 per cent) 
  • 10 year Boat licence: was $521, now $679 (up 30 per cent) 

 
Case study one: Jon is a third generation boater and small business owner in southern Sydney. Jon runs a family-owned marine retailer that has been operating for more than 75 years.  

“There is a perception that boating is reserved for the rich, but the vast majority of registered boats are under 6m that means the popular “tinnie”, family runabouts and trailer fishing boats. These are everyday Australians. Hardworking people, raising families and managing household budgets on the kitchen table, who enjoy time on the water with family and friends,” Jon Hunt, Hunts Marine, Southern Sydney.  
 

Case study two: Craig, a dad in western Sydney with a second-hand, decade-old pwc. To spend quality time with his young family, Craig just wants to take his kids out a couple of times a year. He says these proposed licence and registration fee increases will price him out of the sport.  

“I’ve been riding a jetski for years and want my kids to enjoy this sport, too. But these new fees will price me and my family out of our favourite hobby, and I don’t think boating should just be for rich people. I ride safely and responsibly, I’ve done nothing wrong, so why is the government doing this? This will push a lot of people out of the sport.” – Craig, Western Sydney.  
 

Case study three: Corinne, who works as a professional in the transport sector, has been riding a jetski for years. These new fees are forcing her to now reconsider her hobby because the proposed jetski fees in NSW will be the highest in the world. 

“Please don’t punish the majority of jetski riders and boaties because of the few people who give the sport a bad name. I pride myself on riding safely and love how easy and enjoyable jetskis are to ride. But these new fees are just unfair and have come out of nowhere.” – Corinne, Northern Sydney.  
 

Case study four: Ethan is a bright, young apprentice marine mechanic in Northwestern Sydney. He is worried the higher licence and registration fees for boats and skis will discourage people from the sport, potentially leading to job losses across the hundreds of boating businesses that support waterway users. 

“I love being a marine mechanic and it is actually quite hard to get an apprenticeship in this area. If there is a downturn in the sales of boats and jetskis because of the higher fees, then there will be fewer opportunities for boat shops to employ apprentices like me.” Ethan, Northwest Sydney.  

 

BIA concerns on behalf of the industry and the public:  

  • Why has Transport for NSW abandoned more than 20 years of applying CPI and chosen fee increases across boating and PWC licences and registrations, as well as moorings, ranging from double to 15 times CPI without appropriate consultation?  
  • Why has Transport for NSW abandoned long-term data (of at least 10 years) to iron out statistical bumps which are uncommon in boating data?  Increased waterways users over the past 4 years was due to a global pandemic. Demand was not driven by new products entering the market or increased consumer wealth. Disposable income was spent on automobiles, caravans, watercraft etc., as people were restricted from travelling interstate and overseas.  
  • Why was there no consultation with representative organisations for the boating industry or boating sector. Representing hundreds of businesses, thousands of workers, and more than 2 million people who go boating across the State? 
  • Why is Transport for NSW attempting to justify the major fee hike applied to PWC because of the increased levels of ownership in recent years? There is no mention however that increased PWC activity delivered more than an estimated $15 million into Transport for NSW coffers (over this period) from the additional licences and registrations.  Increased user numbers entering the market were driven largely by Covid-19 travel restrictions. Industry predicted, and is now witnessing, that these figures would not be sustained post Covid-19. 
  • Why are PWC users discriminated against when other unique forms of transport and recreation (such as motorcycles) are not slugged with discriminatory higher licence fees compared to cars? 
  • Why has Transport launched the road toll fee relief rebate but is poised to take more money from the boating community? Boating is proven to be good for mental health and well-being. Users are being penalised for endeavouring to de-stress and enjoy outdoor recreation with family and friends. 
  • What has happened to the Waterways Fund? Transport for NSW appears to be using the boating public to make up for a depleted Waterways Fund. A hypothecated fund which has delivered sustainable funding from boating fees and charges to the maritime regulator for decades. 
  • Why has Transport for NSW chosen to launch the new fee structure during significant pressures on the cost of living for everyday Australians?  As mentioned previously, 90% of waterways users are hard-working people that are boating with their families on small watercraft, not luxury vessels. Why would Transport for NSW raise a barrier to participation by further inflating the already highest fees for recreational boating in the nation? 

 The BIA has formally asked the NSW Government to immediately pause all proposed increases above CPI (inflation). This will enable time for appropriate consultation with BIA and key stakeholders in the boating and PWC sector. Stakeholders which represent and understand the many small businesses and members of the public who will be adversely impacted by these changes.  

Background 

 Waterways Fund 

The Waterways Fund exists under the Ports and Maritime Administration Act 1995. It is funded from revenue raised from recreational boating licences, registrations and moorings, and from maritime property management including wetland leases. As a hypothecated fund, the Fund funds the annual TfNSW effort in delivering back to its largely recreational customer base through programs, products and services.   

The Fund has long been the envy of all regulators in Australia who generally have struggled to fund their respective maritime safety, property and infrastructure programs being reliant on regular bids for government allocations. In contrast to other jurisdictions, NSW has for decades been well funded for its compliance, enforcement and education, as well as recreational boating infrastructure priorities.   

To note: The Fund receives revenue from: 

  1. Boat licences x 460k 
  2. PWC licences x 87k 
  3. Boat registrations 218k 
  4. PWC registrations x20k 
  5. Moorings private x 6000 (estimated) 
  6. Wetland leases x 2000 (estimated) (eg., every private home with a jetty on Sydney Harbour is an example of wetland lease) 
  7. Commercial Leases from commercial marinas, boatyards, etc 

 Items #1 to 4 would equate to at least $74M in revenue with mooring and commercial and other fees on top. 

It is worth noting the following recent Annual Reports for Transport for NSW stated:  

  • 2022 had a consolidated figure of more than $413 million 
  • 2023 had more than $348 million  

It is also worth noting the following: 

  • In October 2020 the NSW Government announced a $205 million stimulus package drawn from the Fund;  
  • TfNSW has spent $millions on the Sydney ferry Wharf Upgrade Program over many years drawn from the Fund; The Kamay Wharf project is one of those.  

Maritime Advisory Council (MAC) 

BIA has supported Transport for NSW for decades to promote safe and responsible boating. Unfortunately, in this instance, our strong lines of communication were not used to ensure appropriate consultation with industry and key stakeholders. We understand the Maritime Advisory Council was briefed and to what depth is unclear. However, appointed Advisory Council members are not in attendance at meetings as representatives of organisations. They are also bound by confidentiality terms which limits their discussion outside of the council and Council minutes are not published online, as they once were to support transparency.  

Industry is concerned that the MAC was not adequately informed of the full scale and range of the increases other than CPI. It is believed that a base of 5.89% was applied, but several of the fee increases far exceed that figure. The BIA supports the relevance of MAC as an excellent forum to ‘test’ an idea or proposal, particularly those of state significance. However, BIA believes this does not negate the need for wider consultation on significant changes to legislation or policy as is the case with this fee increase.